Vanke: Significant Debt Repayment Pressure, Seeking Long-term Resolution Plan

Securities Times reporter Zhang Yifan

On March 31, after Vanke A (000002) disclosed its annual report, it held an analyst meeting, attended by Chairman Huang Liping and others. Vanke’s management said at the meeting that between April and July, publicly issued debt will fall due in a concentrated manner, with particularly prominent repayment pressure. The company will actively seek solutions to resolve its debt on a long-term, sustainable basis.

The financial statements disclosed by Vanke show that in 2025, Vanke’s operating revenue was 233.43 billion yuan, with a net loss of 88.56 billion yuan. The company’s performance is still constrained by factors including a significant decline in the settlement scale of real estate development projects, gross margin still remaining at a low level, additional provisions for credit impairment and asset impairment, and some off-market bulk asset transactions and equity transactions being priced below their book values.

In its annual report, Vanke said that in 2025 the company actively carried out self-rescue efforts and had completed the repayment of 33.21 billion yuan of publicly issued debt. Of those, starting in November 2025, the company gradually completed the extension of the two tranches of mid-term notes “22 Vanke MTN004” and “22 Vanke MTN005,” as well as one corporate bond “H1 Vanke 02.”

“However, affected by multiple internal and external factors, the company’s current operating situation remains extremely challenging.” Vanke executives said at the earnings briefing.

By the end of the reporting period, Vanke’s net debt ratio was 123.5%, while its asset-liability ratio was 76.9%. Of this, interest-bearing liabilities totaled 358.48 billion yuan, and interest-bearing liabilities due within one year were 160.56 billion yuan, accounting for 44.8%. In 2026, Vanke will still face a further total of 14.68 billion yuan of publicly issued debt due, including 11.27 billion yuan concentrated due between April and July, with particularly prominent repayment pressure.

“Next, the company will adhere to an open and pragmatic approach, maintain close communication and consultation with creditors, and take as its starting point safeguarding the long-term interests of all parties. Based on the company’s actual operating situation, the company will actively seek solutions to resolve its debt on a long-term, sustainable basis. We also sincerely ask all parties to continue providing understanding, support, and tolerance, to move in the same direction as the company, and to provide the company with time and space to resolve risks, creating a stable environment for the company to restore healthy operations as soon as possible.” Vanke executives said at the meeting.

In terms of its property development core business, Vanke said the company will make on-time delivery its top priority, and in 2025 will complete the delivery of 117,000 homes on time with guaranteed quality.

For the 2026 housing delivery tasks, Vanke executives emphasized that on-time home delivery will be the first priority. The company will strengthen efforts across multiple dimensions, including full-cycle progress management and control, supply chain and funding assurance, risk closed-loop management, and end-to-end quality control, continuously improving delivery quality.

The financial report shows that in 2026, Vanke’s existing projects are planned to start new construction and resume construction with a planned floor area of 3.061 million square meters (permitted gross floor area); and the planned completed floor area (permitted gross floor area) is expected to reach 7.441 million square meters. Both targets are cut roughly in half compared with the previous year. As of the end of 2025, within the scope of Vanke’s consolidated financial statements, there are still 10.969 million square meters of sold resources that have not yet been settled.

Regarding Vanke’s operations services business, Vanke executives introduced that the related business is already relatively mature. The various operations services segments are relatively independent, and they have already gained certain scale and brand advantages, with overall operations moving steadily forward. For example, Vanke Cloud is an independent listed company, which has developed into a leading top property services enterprise in the industry in terms of scale and comprehensive service capabilities.

In addition, regarding personnel information that has been circulating recently, Vanke responded that talent mobility is a normal market condition. The company has some colleagues who choose new platforms based on their own career planning, and it also continues to attract excellent talent from all sides. In addition, thousands upon thousands of strivers remain at Vanke, moving forward side by side with the company.